Overall energy subsidies had more than doubled since 2011 which had amounted to 2 trillion dollars i.e. 2.9 percent of the world’s gross domestic product.

It has damaging effects on air quality and health, such as premature deaths due to global warming.

By getting energy prices right can help national governments achieve their goals not only for the environment but also for inclusive growth and sound public finances.

Definition of energy subsidies: The IMF report defined energy subsidies as the difference between the amount of money consumers pay for energy and its true costs, plus a country’s normal sales or value-added tax rate.

In addition, the true costs include environmental effects like carbon emissions that lead to global warming and the health effects.